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Pension Boards Want More Alternatives Education

19 June 2012 (PLANSPONSOREurope.com) – Pension boards and trustees are demanding more education about alternatives and are becoming more receptive to proposals that have education included as a component, according to a survey from Russell Investments.

Russell’s 2012 Global Survey on Alternative Investing reveals 36% of respondents indicated that additional education about alternatives is needed within their organisations.

The survey also reveals institutions currently have significant allocations to alternative investments – on average, 22% of total fund assets.

Diversification was cited as one of the top three reasons for using alternatives by 90% of respondents, while volatility management and low correlation to traditional investments was mentioned by 64%, and return potential was noted by 45%.

Meanwhile most respondents indicated that allocations would remain static or increase over the next one to three years across all alternatives categories. Almost a third (32%) expect to increase their investment in hedge funds and private real estate, 28% in private infrastructure, 25% in private equity, 20% in commodities, and 12% in public real estate and public infrastructure.

 

PLANSPONSOREurope Staff
editors@plansponsoreurope.com





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